|3 Months Ended|
Mar. 31, 2023
The Company’s portfolio of leases contains both finance and operating leases that relate to real estate agreements, vehicles and office equipment agreements.
Real estate agreements
The Company has several property lease agreements in Italy and Austria and one lease agreement in the U.S. which have terms in excess of a twelve month period, these property leases are for our administrative operations in these countries. The Company does not and does not intend to take ownership of the properties at the end of the lease term.
The Company leases several vehicles for business use purposes, the terms of these leases range from twenty four to forty-eight months. The Company does not and does not intend to take ownership of the vehicles at the end of the lease term.
Office equipment agreements
The Company has entered into several finance leases for office equipment, the term of these leases range from thirty-six to sixty months. The Company takes ownership of the office equipment at the end of the lease term.
Right of use assets
Right of use assets included in the condensed consolidated balance sheet are as follows:
Lease costs consists of the following:
Other lease information:
Maturity of Leases
Finance lease liability
The amount of future minimum lease payments under finance leases are as follows:
Operating lease liability
The amount of future minimum lease payments under operating leases are as follows:
The entire disclosure for debt and capital lease obligations can be reported. Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Also includes descriptions and amounts of capital leasing arrangements that consist of direct financing, sales type and leveraged leases. Disclosure may include the effect on the balance sheet and the income statement resulting from a change in lease classification for leases that at inception would have been classified differently had guidance been in effect at the inception of the original lease.
Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef